- BONK’s price has fallen nearly 30% in the last month.
- What we can read from the price chart suggests further declines are possible.
Solana-based meme coin Bonk [BONK] Bucking the trend, last month saw a 27% price decline despite the meme coin market rally. CoinMarketCap The data showed.
Over the 30-day period studied, the daily trading volume of the token decreased significantly.according to Santimento’s According to the data, BONK’s daily trading volume has decreased by 73% in the last month.
Source: Santiment
BONK’s losses will increase
An evaluation of BONK’s key technical indicators on a 1-day chart suggests that the meme coin’s value may fall further.
Indicating that the bears are in control of the market, the directional movement index (DMI) reading shows that the positive directional index (blue) is trending below the negative index (red). I did. These lines have been in place since April 9th.
When an asset’s DMI is set this way, it suggests that the asset’s downward price movements are stronger than its upward price movements.
Furthermore, as of this writing, the altcoins’ major momentum indicators are sitting below their respective neutral lines. BONK’s relative strength index (RSI) was 45.28 and money flow index (MFI) was 45.09.
These values indicate that BONK’s circulation exceeds its accumulation, thereby putting downward pressure on its price.
Furthermore, the Elder Ray Index has only recorded negative values since April 2nd. This indicator measures the relationship between the strength of buyers and sellers in the market.
If its value is negative, it means that the bear power is greater and there is more selling activity.
Confirming the strength of the bears, BONK’s MACD line is below the signal and zero line at the time of writing.
If the MACD line of an asset falls below the signal line and returns a negative value, it is a bearish signal. This suggests that the short-term trend is weaker than the long-term trend. Traders take this as a signal to exit long positions and take short positions.
Source: BONK/USDT on TradingView
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The traders won’t forgive
BONK’s derivatives market reported a 65% jump in futures open interest since March 5th. coin glass data. However, despite this decline, the funding rate of crypto exchanges as a whole remains positive.
This suggests that futures market participants continue to take long positions in anticipation of an uptrend.
